Fund Completion Update

We wanted to update you on the progress of our Group Litigation Proposal.

In the two weeks after we published our Group Litigation Proposal, interest in the proposal has grown and we have been receiving inquiries from an increasing number of people affected by UT Markets. Based on our data, there has been a 42% increase in the number of people who have contacted us and people have already started paying into the fund. Under these circumstances we are confident that we will be able to have the requisite number of participating claimants required to proceed with our strategy.

However, the fund collection has progressed more slowly than we had expected. We believe this is most probably due to the following:

  • Many UT Markets investors work for airlines. Cabin crew and pilots have extremely busy schedules and may spend only 20% of their time at their main base. It may have therefore been more difficult for investors to find time to review our Proposal and respond to us. As the UT Markets investors are generally mobile international professionals, this is probably more generally true of the investor population.
  • Some UT Markets investors are still expecting that UT Markets is going to return their funds (in a way which is perfectly understandable) and it takes different periods of time for people to be persuaded to take legal action.
  • For those who believe they have been defrauded by UT Markets, there is a natural aversion to spend more money after a substantial loss. We are however confident that the amount of funding we are requesting is worth investing in the prospect of recovery, and believe that it is therefore entirely rational to participate.

As we say above, there are good reasons to be confident that the target we have set ourselves will be reached albeit somewhat later than expected. To respond to the above three factors we will:

  • Allow more time for review and for investors to be persuaded that action is helpful while remaining available for answering any questions and updating with information on the legal and regulatory steps that are proceeding even prior to the action that will be funded through the group litigation proposal.
  • Make ourselves available in Dubai over a period which is sufficiently long to allow as many investors as possible to meet us there in order to gain further comfort and have a further opportunity to ask questions. We will provide you with more information about that at a later point. We expect to be able to come to Dubai by the end of November.